Agenda item

Update on the Council's financial position in 2022/23 and Medium-Term Financial Strategy update 2023/24 to 2026/27

Meeting of Cabinet, Thursday, 24th November, 2022 5.30 pm (Item EX/48)

To consider the report of the Cabinet Member for Finance & Parking

Decision:

RESOLVED

(i) To note the changes in the Council’s financial position in 2022/23 and medium-term.

RECOMMENDED TO COUNCIL

(ii) That the charges from 1 April 2023 for the garden waste subscription service are increased from £44 for the first bin to £49 and for any subsequent bin increased from £35 to £41.

(iii) That Fixed Penalty Notices for littering and fly tipping be raised from £75 to £150 with a £110 early payment fee (currently £50).

(iv) To increase the car park advertising fees as set out in Appendix 3.

(v) To approve the creation of a revenue budget in Leisure services for the Drill Hall of £9,000 income and £27,100 expenditure, which is a net cost of £18,100 in the 2022/23 budget.

(vi) To increase the capital budget for the Highwood Community Centre project by £150,000, from £2.75m to £2.9m.

REASON

(i) The Council needs to acknowledge the effects that high levels of inflation will have on its financial position both in the short and medium-term. This has moved the council from what has been a long-term healthy financial position to one with predicted deficits unless action is taken on fees and charges. Given the level of uncertainty in the projections, the economy and proposed Government action, the report does not recommend direct action to reduce expenditure at this stage.

(ii) to iv) Council required to approve fees and charges, as per the constitution.

(v) Council is required to set the revenue budget, as per the constitution. The budget will enable the Council to continue to operate the Drill Hall for the final quarter of 2022/23.

(vi) Council is required to set the capital budget, as per the constitution.

Minutes:

Councillor Tony Hogben, Cabinet Member for Finance & Parking, introduced the report on the Council’s financial position in 2022/23 and Medium-Term Financial Plan, and how key points and assumptions had changed since the update to Cabinet in September.

He stated that a further rise in inflation had put additional pressure on costs, particularly for building materials and maintenance. The rise in interest rates meant that the Council’s investment income was of some help in covering these additional costs. Parking income had also recovered well, and the proposed increase in fees and charges would also help to balance the budget in 2023/24.

The Cabinet Member summarised the reasons for continuing economic pressure and uncertainty, as set out in the report, and stated that the indicative figures for the 2023/24 budget were still liable to amendment and change before being brought to Council in February 2023.

Since publication of the report the Government’s Budget on 17 November announced protection of funding for the NHS and Education budgets. It could be inferred from this that other government department budgets, including Local Government, may fall. The provisional settlement would be received in December.

Later years in the Medium-Term Financial Strategy remain very uncertain, with the impact of Government funding, inflation, fees and charges, business rates and levelling up all key variables. The estimated £1.3m cost of food waste collection from autumn 2024 remains a major factor in the projections from 2024/25 onwards. However, the Cabinet Member advised that it was becoming more likely that the Government’s implementation of food waste collection legislation would be postponed to a later year.